OREANDA-NEWS. Commenting on quarter's developments, Tex Gunning, CEO said:

'In our recent trading statement, we highlighted the challenging trading conditions in Europe. Visibility on these trading conditions remains limited. Despite this, this quarter saw another improvement in our adjusted operating income, with every segment making a positive contribution apart from Europe Other & Americas where performance was broadly flat. Supporting this was the progress made in rolling out Outlook, including ongoing Deliver!-related cost savings, which were €28m during the quarter.

The Outlook strategy focuses on improving performance and productivity across the company, including increasing automation in TNT's hubs and depots, launching new marketing campaigns and continuing to focus on providing our customers with a market leading service.

Central to the Outlook strategy in the next three to five years is the investment programme in TNT's businesses.

The new €185m investment in TNT's European road network that we announce today will improve efficiency and service quality and strengthen TNT's position as the preferred road delivery service in terms of quality, speed, coverage and value.

Our management board is focused on creating a sustainable future for TNT. We are looking forward to giving a full update on our progress and plans for the business during the Capital Markets Day on 18 February 2015.'

Outlook strategy

Deliver!-related savings of €28m in 3Q14 and expected to be around €120m for the full year 2014.

3Q14 restructuring-related charges and restructuring-related implementation costs €46m (mainly France and unallocated), full-year expectations of approximately €185m

Ongoing investments in Australia (new hubs), Italy (depot modernisation), UK and Liege EuroHub

€185m investment announced in international European road network to increase productivity and improve service

Launch of marketing campaign and new brand to boost visibility and drive sales from SME customers

New segment reporting to be implemented at 4Q14, with full reconciliation. The new segments will be International Europe, Domestics, International AMEA. Expected non-cash goodwill impairment of €32m as a result of the new reporting structure

Full update on guidance during Capital Markets Day on 18 February 2015

2014 guidance

Combined Europe Main and Europe Other & Americas operating results stabilising, even though visibility remains limited

Asia Middle East & Africa and Brazil Domestic operating results to be significantly better than prior year, Pacific to show better operating results than last year

Additional investments in marketing and brand of approximately €20m in 4Q

Unallocated around €(30)m

Forecasted €70-80m in capex in 4Q

Segments

Europe Main: Adjusted revenues slightly lower, impacted by slower European economy, pricing pressures, contract pruning in Italy

Europe Other & Americas: Impact from price pressure in some markets, tough trading conditions in Russia and Ukraine. Operating income in line with last year

Pacific: Better performance as a result of higher volumes and indirect cost savings

AMEA: Adjusted performance improved as planned, supported by better revenue quality

Brazil Domestic: Recovery continued, with a second consecutive quarter of adjusted operational profit